Goldman Sachs said investor positioning is becoming more defensive as risk appetite weakens and hedge fund net leverage declines, with funds moving out of momentum and cyclical stocks and into safe-haven assets. According to Sina Finance, a team led by Christian Mueller-Glissmann said Goldman Sachs’ sentiment and positioning indicator fell to the 46th percentile, its lowest level since April, amid increased bond inflows, higher safe-haven positioning and a rotation into defensive sectors. Commodity trading advisers and risk-parity funds remained positioned for declines in risk assets. The team estimated that momentum-focused exchange-traded funds saw net outflows of $5.1 billion in September, one of the largest monthly withdrawals in recent years, while leveraged technology ETFs shrank further. Sector flows favored telecommunications, utilities and infrastructure, while financials and industrials saw the largest outflows. The team said volatility diverged across asset classes, with bond volatility rising much more than stock volatility; funds focused on the United States and Western Europe both saw larger flows into bonds than into stocks. The report also said holdings of traditional safe-haven assets, including gold and the yen, increased.